Mortgage-deal spoils divide winners and losers in US states

[NEW YORK] Hundreds of millions of dollars in mortgage-fraud settlements from JPMorgan Chase & Co and other banks are providing a windfall to state attorneys-general - and creating a new class of political winners and losers.

In New York, Attorney- General Eric Schneiderman learned last November that his office was getting US$613 million from JPMorgan - about triple his annual budget. He said he would use the cash to reimburse victims and finance investigations. Governor Andrew Cuomo, a fellow Democrat, questioned AG Schneiderman's hold on the money and a dispute over the cash ensued.

California Attorney-General Kamala Harris, seen by some as a potential gubernatorial candidate in 2018, use…